Caucasus Press Review (October 13-19)

By Vestnik Kavkaza

According to the Akho paper (Azerbaijan), most construction materials used in Azerbaijan are produced in the republic. Construction materials worth 390.2 million manats ($500,000) were produced in the republic in 2013, exceeding the volume 56.6-fold, compared with 20 years ago. The volume of gypsum, cement, asbestos, mica, ceramics and glass imported from other countries has dropped by 27.4% in five years. Construction stone, bricks, sand, crushed stone, drywall produced in Azerbaijan fully meet domestic demands. Cement is the only exception, the republic produces only 45% of the cement it needs. Azerbaijan produces concrete, fitting, steel pipes, construction glass, plastic doors, window units, paint and polymer coverings.

National manufacturers fulfil only 15% of the demand for parquet boards. Specialists say the problem is in the lack of materials. The same problems concern fittings. Although production in the country has increased 2.5-fold in five years, the demand for construction materials continues to grow.

Glass and glass products worth $2.6 million were exported from Azerbaijan in 2013, 14.5-fold more than in 2008. Plastic products worth $122 million, paint worth $1.367 million, stone, lime and sulfur worth $9 million were exported. Specialists say that the export potentials of Azerbaijan are much greater, but the dynamic development of the construction sector slows down exports, construction companies can hardly fulfil the demands of national consumers.

* * *The Delovoy Express paper (Armenia) informs that Philip Bennett, deputy head of the European Bank for Reconstruction and Development (EBRD), met with Armenian Minister for Economy Karen Chshmarityan. The European banker told the minister that the bank will clarify the agenda and development of cooperation with Armenia. Access to resources, improvement of infrastructure in regions and expansion of the network of financial contractors are priorities of the EBRD.

Chshmarityan expressed hope that new opportunities would arise in the future to deepen cooperation and noted that the republic will continue active cooperation with the European Union, regardless of joining the Eurasian Economic Union.

Analysts of the EBRD see a fall of activity in the macroeconomy of Armenia as a result of the falling balance of payments, as seen in the reduction of gross international reserves. The GDP growth of the country slowed greatly in Q2 2014, amounting to 2.3% a year. The budget will have a profit of 3% of GDP. As of June 2014, inflation fell to 1.8% due to high economic activity and a halt of rising prices for gas imports. EBRD analysts note improvement of economic activity this summer in the context of economic problems in Russia and Europe. The GDP growth of Armenia in 2014 may reach 4.5%. According to the National Statistical Service, economic activity in Armenia increased by 11.3% in September 2014.

* * *Two new projects with two companies have been approved within the framework of the Made in Georgia government program, Tbilisskaya Nedelya rreports.

AG Telekom in Georgia received a loan worth $606,300. Constantine Bakanidze, the director of the company, said that Georgia had no analogical industries. The project is worth $2 million. The company will produce motherboards, computers, telephones, tablet PCs and other electronics. The products will be sold in Georgia and Europe. The products will fulfil 60% of domestic demand for electronics. Up to 100 people will start work at the factory this year.

Dekora will produce decorative sand. A loan worth $150,000 has been granted to the business. The enterprise will be headquartered in Kutaisi. 15-20 people will be doing the manufacturing work and up to 100 will be distributing products. Local municipalities, landscapers, architects and private companies will be potential consumers.

The Make in Georgia program was launched in June 2014 to provide businessmen with financial, infrastructural and consultative assistance. A special website within the framework of the program offers businessmen to choose places for their enterprises. Property is almost free of charge, available for only 1 lari. Businessmen are obliged to invest a sum worth 6 times the property in Tbilisi, 4 times if outside the city and keep manufacturing products for two years.

The budget totals 46 million lari ($26 million), 30 million lari ($17 million) of the sum will be spent on production and recycling of agricultural products, 16 million lari ($9 million) on production of industrial goods. Banks will grant businessmen loans. 10% of their interest will be covered by the government. The minimum loan will be $150,000, the maximum $2 million.

* * *The Serdalo paper (Ingushetia) reports that one of the two car bridges over the River Armkhi connecting Olgetti with the Dzheyrakhsky District has opened. The embankment and a larger bridge (36m long and 14m wide) are under construction. Builders say that the section was hit by heavy rain in 2012, resulting in the flooding of the Armkhi and damage to infrastructure and houses. Locals and border guards had to use a ferry which was in poor technical condition.

The place has become a major construction site to minimize the damage that nature may cause in the future and give the central part of the village a better appearance.

Ingush Leader Yunus-Bek Yevkurov arrived to congratulate the population on the opening of the bridge and emphasized the need to send resources to conclude the construction in the near future, paying special attention to the quality of work. The constructors promised to start a second bridge this year.

* * *Kabardino-Balkarskaya Pravda informs that the First Republican Spartakiad for children and youth with limited abilities was held in Nalchik. 150 athletes aged 8-16 arrived from Nalchik, Tyrnyauz, Prokhladny, Zolsky, Maysky and Prokhladnensky districts for the event. Young athletes were given the Spartak Stadium for competitions in jumping, ball-throwing, running, archery. The Olimpiysky swimming pool and the Ladya Chess Club were opened for them. Such competitions used to be held only at city level. The Republican Spartakiad expanded the borders of sports. Alexander Kulyushin, the chief judge, a candidate for sports master, said that the junior sports and adaption school he was the director of had about 100 children and teenagers with limited abilities training. Children in the republic have prospects for physical development, sports growth and may get a chance to take part in Paralympic Games and Deaflympics.